As soon as he owns Twitter, Elon Musk wants to lay off three quarters of the staff, reports The Washington Post. This means that more than 5,600 people will lose their jobs and only 2,000 employees will be allowed to remain.
Musk made a $ 44 billion bid on Twitter in April. Shortly thereafter, the top entrepreneur came to regret and he decided in July that he wanted out of the deal. That’s when Twitter decided to sue Musk.
The planned trial has been temporarily suspended. Earlier this month, Musk announced that he was willing to buy Twitter for the agreed amount.
Musk’s plans go a lot further than those of the current Twitter management. If the acquisition of Twitter does not go ahead, the current management wants to reduce labor costs by around $ 800 million by the end of 2023. That would amount to the departure of a quarter of the staff. A lot less than the three quarters that Musk has in mind.
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at nicholas.dekramer@economicinform.com
